How does an 8-core 1.6GHz chip backed by a 768-thread-packing GPU in your Xbox sound? Apparently the Xbox 720, or whatever it ends up getting called, will boast 1.2 teraflops of processing power. Those gun-toting scumbags are never going to look so real when you blow their heads clean-off with your Barrat .50 cal.

The next-gen gaming rumours are flowing thick and fast, which probably (hopefully) means both the PS4 and Xbox 720 are just around the corner. Even though the PS4 will apparently pawn the next-gen Microsoft machine, Redmond's pulling out all the stops according to the latest leak from VGleaks.

8GB of DDR3 RAM, along with 32MB of fast-embedded SRAM, plus a Blu-ray drive, USB3.0 ports, and even HDMI 1.4a in for a bit of media magic are rumoured. Kinect's apparently getting a boost too, which isn't exactly a shock, with some multichannel echo cancellation going on, plus its own separate accessory port.

E3′s going to be pretty stellar if any of these leaks prove true. It'll be nice to get a bit more power under your telebox, especially considering that Steam Box is looking mighty tempting. Both Microsoft and Sony seem to be gearing up for yet more all-out war, but Valve, Ouya, or a plethora of cheaper options might end up stealing the show if they're not careful. [VGleaks via CVG]